SOWBO Magazine 4TH edition

Here are some of the definitions some of my
clients have shared over the years:
-Being able to retire at age 55
-Being able to afford an annual vacation
-Paying my bills on time and having money to save
-Acquiring five rental properties in fifteen years
-Living a debt free life
-To be better off this year than I was last year
The path to financial success is littered with clues.
Let?s examine some of the strategies financially
successful people employ.
1. Est ablish Goals
When I say ?financial success, what
images come to mind? Do you see
beautiful people traveling the world
first class, someone driving off into the
sunset in a brand-new red Ferrari or a
smiling family standing outside a
mansion? Whether you answer ?yes?
or ?no?, you?re correct.
Financial success means different
things to different people, the sooner
we define it for ourselves, the earlier
we can take steps to achieve our own
version. If you haven?t thought about it
before, take a few minutes to write
down what financial success means to
you.
Identifying clear goals is crucial to financial
success. A financial goal is the exact amount of
money needed for a specific purchase or service
at a definite date. Making the goal precise helps
you determine how much you need to set aside
each month and allows you to track your
progress.
2. Know your Current Financial Sit uat ion
Taking stock of your current financial situation
today can help you determine what you need to
do tomorrow. Are you on the right track or do you
need to make changes? The net worth and cash
flow statements are critical to understanding how
you?re doing financially.
Your net worth is a snapshot of your finances at
one point in time. It is a good idea to calculate
your net worth at least once a year. Your net
worth should increase over time. If it is not, either
you are not saving enough or taking on too much
debt. Adjusting your spending and savings plan
can help you change this.
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